Third spot in Klarman’s equity portfolio is held by eBay Inc (NASDAQ:EBAY), in which his fund disclosed ownership of 9.32 million shares, worth $537.29 million as of March 31. eBay Inc (NASDAQ:EBAY)’s shares gained 2.78% during the first three months as the company topped consensus estimates for its first quarter earnings, posting adjusted earnings per share of $0.77 versus estimates of $0.71. Revenue for the first quarter was $4.5 billion, just above consensus estimates of $4.4 billion. eBay Inc (NASDAQ:EBAY) is in the process of spinning off PayPal into a separate publicly-traded company. The separation is expected to be completed in the third quarter of 2015. Legendary investor Carl Icahn is also a big fan of eBay Inc. (NASDAQ:EBAY), with his fund Icahn Capital holding 46.27 million shares of the e-commerce company as of the end of the first quarter.
In Micron Technology Inc. (NASDAQ:MU), Baupost held 19.71 million shares, with a reported value of $534.63 million, the holding remaining unchanged over the quarter after Klarman slashed it by 61% during the fourth quarter. That proved wise short-term, as Micron’s stock lost 22.51% during the first quarter and 24.41% year-to-date. For the fiscal second quarter of 2015 ending March 5, Micron Technology Inc. (NASDAQ:MU) posted revenues of $4.17 billion, up 9% compared to the same period a year ago. Net income dropped to $941 million, or $0.81 per diluted share, from $1.14 billion, or $0.97 per diluted share quarter over quarter. Recently, analysts at Nomura reiterated their “Neutral” rating on Micron Technology Inc. (NASDAQ:MU), in addition to reducing their price target on the company to $25 from $28. Other large investors of the company include David Einhorn’s Greenlight Capital and Andreas Halvorsen’s Viking Global.
The fifth top holding of Klarman is represented by Pioneer Natural Resources (NYSE:PXD), a new position in which Baupost bought 3.17 million shares during the first quarter, worth $517.83 million as of March 31. Pioneer Natural Resources (NYSE:PXD) is a $23.3 billion company engaged in oil and gas exploration and production. David Einhorn of Greenlight Capital recently slammed Pioneer Natural Resources (NYSE:PXD) at the 20th annual Sohn Investment Conference. Einhorn took aim at fracking companies during his presentation, focusing on Pioneer Natural Resources (NYSE:PXD). He called the company a “motherfracker” and derided its wasteful spending and cash-burning operations, which includes a loss of $12 for every barrel of oil equivalent that it produces. According to Einhorn, such companies have a “nearly infinite supply of negative return opportunities.” Shares of Pioneer Natural Resources (NYSE:PXD) gained 9.85% during the first quarter but gave back most of those gains following Einhorn’s presentation in early May. Pioneer Natural Resources swung to a loss of $78 million, or $0.52 per share during the first quarter, versus net income of $123 million, or $0.85 per share in the same quarter last year. Other investors that disagree with Einhorn and see value in Pioneer Natural Resources (NYSE:PXD) include SPO Advisory Corp led by John H. Scully, which held 7.35 million shares at the end of the first quarter.
Disclosure: None
